Ultralife Corporation

Good day and welcome to this Ultralife Corporation second quarter 2022 earnings release conference call. At this time, for opening remarks and introductions, I would like to turn the call over to Ms. Jody Berfning. Please go ahead. Thank you, Bettina, and good morning, everyone.

Thank you for joining us this morning for the Ultralife Corporation's earnings conference call for the second quarter of fiscal 2022. With us on today's call are Mike Popolek, Ultralife's President and CEO, and Phil Fein, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning. And if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecorps.com, where you'll find the release under investor news in the investor relations section. Before turning the call over to management, I would like to remind everyone Some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. Potential risks and uncertainties that could cause actual results to differ materially include the impact of COVID-19 and related supply chain disruptions, potential reductions in revenues from key customers, acceptance of our new products on a global basis, and uncertain global economic conditions. The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful that differ from GAAP. These non-GAAP measures should be considered as supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike.

Good morning, Jody, and thank you, everyone, for joining the call. Today, I'll start by making some brief overall comments about our Q2 2022 operating performance after which I'll turn the call over to Phil, who will take you through the detailed financial results. After Phil is finished, I'll provide a brief update on the progress against our 2022 revenue initiatives, then open it up for questions. For the second quarter of 2022, driven by strong shipments to commercial and markets, we delivered a 20% year-over-year sales increase and $0.03 of earnings per share. double-digit increases in organic medical and industrial market sales, and strong single-digit increases in core oil and gas sales aided by revenues from the new acquisition more than offset delayed shipments against government defense existing orders in both our business segments due to persistent supply chain constraints. In Q2, we were pleased to swing back to profitability from the last few quarters due to increased revenues and controlling operating expenses, and despite continued inflationary cost pressures and manufacturing inefficiencies associated with supply chain disruptions, which pressured gross margins. We also assertively managed working capital, including inventory, by working closely with our suppliers and customers in an effort to position ourselves to the best extent possible for mitigating the impact of long lead time raw materials and components on the timely manufacturing of our products and delivery to our customers. In a few minutes, I'll give you further updates on our revenue initiatives, but first I'd like to ask Ultralight CFO, Phil Fain, to take you through additional details of the second quarter 2022 financial performance. Phil?